Price elasticity (e)= x/percent change in price where x stands for:
A)percent change in number of consumers.
B)gross change in price.
C)gross change in production.
D)percent change in quantity demanded.

Question

Quizplus · Accepted Answer

Price elasticity measures the responsiveness of quantity demanded to a change in price. Therefore, x in the formula refers to the percent change in quantity demanded. Choices A, B, and C are not relevant to the calculation of price elasticity.

Price Elasticity (E)= X/percent Change in Price Where X Stands